Oil Prices Drop 13% After Iran Declares Strait of Hormuz Fully Open The global oil market saw a sharp decline on Friday as Iran announced that the Strait of Hormuz would be "completely open" for commercial traffic during the remaining period of a ceasefire agreement. This declaration triggered a 13% drop in Brent crude prices, which fell to $86.30 per barrel, and a similar 13% decline in U.S. West Texas Intermediate (WTI) crude, which dropped to $79.20 per barrel. The announcement came after Iran’s Foreign Minister, Seyed Abbas Araghchi, stated in a post on X that the strait would remain open for all commercial vessels in alignment with the ceasefire in Lebanon. The decision to declare the strait open followed a statement by U.S. President Donald Trump, who announced on Thursday that Israel and Lebanon had agreed to a 10-day ceasefire. The news triggered a surge in U.S. stock markets, with the Dow Jones Industrial Average rising 1,032 points—2.1%—and recovering all losses since the start of the conflict with Iran. The S&P 500 gained 1.3%, while the Nasdaq climbed 1.6%, extending its gains after rebounding from earlier losses tied to the conflict. Both the S&P 500 and Nasdaq had previously reached historical highs in consecutive trading days. The market rally was fueled by optimism surrounding the ceasefire agreement and the recent decline in oil prices. The S&P 500 had gained over 11% since its recent low on March 30, marking a significant rebound. The Nasdaq Composite extended its winning streak to 12 consecutive days, its longest since 2009, with today’s gains potentially setting a new record for the longest winning streak since 1992. The Strait of Hormuz, a critical maritime chokepoint for global oil shipments, had been a focal point of market concerns.#iran #donald_trump #strait_of_hormuz #seyed_abbas_araghchi
